Meeting_Body
MEASURE M INDEPENDENT TAXPAYER OVERSIGHT COMMITTEE
MARCH 4, 2026
Subject
SUBJECT: LOCAL RETURN
Action
ACTION: RECEIVE ORAL REPORT
Heading
RECOMMENDATION
Title
RECEIVE oral report on Local Return programmed revenues and uses for Los Angeles County jurisdictions to support discussion on the effective and efficient use of funds.
Issue
ISSUE
To support the discussion on Local Return revenue amounts programmed and usage by each Los Angeles County local jurisdiction, this report provides a quarterly update and presents the status of Local Return funding in the second quarter of fiscal year 2026 (FY26). This includes a summary of FY25 Measure M Local Return audit findings, a summary of actual Measure M fund use for FY25, and updates on current points of concern with Metro’s Board of Directors. The majority of audit findings were procedural in nature and were resolved during the audit.
Equity_Platform
EQUITY PLATFORM
Local Return receives a 17% revenue share of the Measure M Ordinance funding apportioned to local jurisdictions by population. Under Board-adopted guidelines, these funds are used by recipients to support the implementation of various transportation projects and improvements throughout the region. This includes improvements for public access, paratransit services for seniors and individuals with disabilities, and transit subsidies for students and low-income residents. Local jurisdictions make the determination of the projects that are most beneficial for their communities.
Staff will continue to support jurisdictions in meeting Local Return requirements through workshops, multiple written communications regarding deadlines and one-on-one briefings with the goal of improving program compliance. In May 2025, Metro held a FY25 Consolidated Audit Workshop to clarify the program’s requirements with audit compliance.
Staff also worked with cities whose funds were at risk of expiring by proposing the creation of Capital Reserve accounts, allowing those jurisdictions additional time to complete larger projects. Those Capital Reserve accounts were approved by the Metro Board last June. In response to the March 2023 Metro Board Bus Shelters Motion by Directors Hahn, Mitchell, Najarian, Dupont-Walker and Horvath (Attachment A), Local Return staff will continue to monitor and report on bus stop improvements for the region and will inform the planned Quality of Life Scorecard of the data so that they may assess how the pass-through funding supports local infrastructure.
Attachments
ATTACHMENT
Attachment A - Motion 20 - Metro Bus Shelters Motion
Prepared_by
Prepared by: Chelsea Meister, Manager, Transportation Planning, Local Programming,
(213) 922-5638
Susan Richan, Senior Director, Local Programming, (213) 922-3017
Cosette Stark, Executive Officer, Finance, (213) 922-2822
Reviewed_By
Reviewed by: Michelle Navarro, Chief Financial Officer (Interim), (213) 922-3056